Management in Decentralized Autonomous Organizations (DAO): Analysis of Proposals

Abstrakt

The emerging trend in information technology, Web 3.0, offers the necessary technology to build Decentralized Autonomous Organizations (DAOs). These innovative, fully digital organizational structures utilize both human and artificial intelligence (AI). Operating entirely in the virtual realm and unaffiliated with any physical entities, DAOs function autonomously, free from external interference. Additionally, DAOs hold virtual assets that can be employed for creating and signing digital contracts with humans or for investment purposes. Governance within a DAO is a collaborative effort, managed by both AI and token holders.

My previous research established that DAOs have features and tools that empower their managers, whether AI or human, to carry out all four fundamental functions of management: Planning, Organizing, Controlling, and Leading. The cornerstone of DAO management is its proposal and voting mechanisms, which constitute its core functionalities.

The aim of this study was to investigate how DAOs use proposals to execute these fundamental functions of management. Given the transparent nature of DAOs and the permanent archiving of all proposals on the blockchain, I was able to examine a comprehensive dataset of proposals across a majority of existing DAOs. Latent Dirichlet Allocation (LDA) was employed for the analysis of proposal titles and content. As of the data collection date, a total of 15,256 DAOs were available for study, of which 175 were ultimately selected for in-depth analysis.

The most significant conclusion is that proposals are primarily utilized for the Planning and Organizing functions. The study also revealed that a considerable portion of management activities in DAOs occurs outside the formal proposal and voting mechanisms.